African Alliance Insurance Plc pays N780 million to settle annuities
Joy Agwunobi
Annuitants of African Alliance Insurance Plc, who have been experiencing prolonged delays in receiving their monthly payments due to the company’s financial instability, are set to benefit from a new development.
The Interim Management and Board (IMB) of African Alliance Insurance Plc has initiated the payment of all legitimate claims and annuities, releasing an initial sum of N780 million.The move is aimed at restoring public confidence and positioning the company for long-term growth.
This development comes less than a month after the National Insurance Commission (NAICOM) appointed the interim management and board. The company has emphasised that this step is part of its broader commitment to upholding its core values of integrity, transparency, and a customer-centric approach.
Jacob Erhabor, the managing director and CEO of African Alliance, spoke positively about the move, stressing the company’s focus on fulfilling its contractual obligations. “We are taking decisive actions to ensure the prompt payment of all valid claims in this new chapter,” Erhabor stated.
“This marks the start of a new era for the African Alliance. We understand how crucial trust is in the insurance sector, and we are fully committed to restoring the confidence of all our stakeholders. The African Alliance will rise again,”he added.
The payment initiative is part of a broader strategic overhaul aimed at stabilising the company’s operations, improving its financial standing, and boosting its efficiency. The management is adopting thorough measures to verify and authenticate claims to ensure that only legitimate claims are processed.
Policyholders and other stakeholders are encouraged to remain confident in the brand, as the new leadership continues working diligently to restore African Alliance to its rightful place as a reliable force in Nigeria’s insurance sector.
NAICOM had previously intervened on 30th October 2024, removing the company’s Board and Management and appointing an Interim Management Board.
Olusegun Omosehi, the Commissioner for Insurance of NAICOM explained that the decision followed a detailed review of the company’s financial condition, governance, and operations, which revealed serious concerns about its ability to continue functioning effectively. This uncertainty had been impacting the settlement of claims and the timely payment to annuitants.
To address these issues, NAICOM appointed a new Interim Board, which consists of Haruna Mustapha as Chairman, Jacob Erhabor as Managing Director/CEO, Wasiu Amao as Executive Director of Technical, Oremeyi Longe as Executive Director of Finance, Anthony Achebe as Non-Executive Director, and Halimatu M. Khabeeb as Non-Executive Director.